Consumer food subsidies in India: proposals for reform.

Abstract

In recent years, an important item on the agenda of economic reformers in India has been to reduce the scale of food subsidies, by means of targeting the system of public distribution of food (PDS). A recent World Bank study makes concrete suggestions for reform of the PDS and these are examined critically in this article. Specifically, 1 argue against narrow targeting and in favour of broad targeting or near‐universal provision of the PDS. I also argue that a strong and effective system of procurement needs to be maintained and this requires the continuation of an organisation such as the Food Corporation of India. The lesson from Kerala is that strong political support is essential for establishing and maintaining an effective system of food security.